US embassy cable - 04ROME1590

C O N F I D E N T I A L ROME 001590 
 
SIPDIS 
 
 
E.O. 12958: DECL: 04/22/2014 
TAGS: PARM, PREL, MASS, IT, EUN 
SUBJECT: EU ARMS EMBARGO ON CHINA: MORE ITALIAN VIEWS 
 
 
    REF: A. ROME 1342 
     B. SECSTATE 68263 
 
CLASSIFIED BY: POLITICAL MINISTER-COUNSELOR TOM COUNTRYMAN FOR REASONS 
1.5 (B) AND (D) 
 
1. (C) EMBASSY OFFICERS ON APRIL 7 AND APRIL 22 FURTHER 
ENGAGED ITALIAN OFFICIALS (REF A COVERS OUR INITIAL CONTACTS) 
TO PRESS U.S. CONCERNS ABOUT EU CONSIDERATION OF LIFTING ITS 
ARMS EMBARGO ON CHINA.  DIEGO UNGARO, DIRECTOR OF THE MFA'S 
OFFICE OF DEFENSE INDUSTRY AND SENSITIVE TECHNOLOGY 
TRANSFERS, TOLD ECONOFF EARLIER THIS MONTH THAT ITALY 
RECOGNIZED THE POTENTIAL IMPLICATIONS OF ENDING THE EMBARGO 
ON DEFENSE INDUSTRIAL COOPERATION.  UNGARO, A PROPONENT OF 
THE U.S.-ITALY DEFENSE TRADE RELATIONSHIP, THOUGHT THERE 
WOULD CONTINUE TO BE A LACK OF CONSENSUS WITHIN THE EU ON 
ENDING THE SANCTIONS, AT LEAST IN THE NEAR TERM, GIVEN THE 
STRONG HUMAN RIGHTS CONCERNS IN MANY MEMBER STATES (INCLUDING 
ITALY) AND WITHIN THE EUROPEAN PARLIAMENT.  UNGARO SUGGESTED 
IT MIGHT BE POSSIBLE TO STRENGTHEN THE EU CODE OF CONDUCT ON 
ARMS EXPORTS INTO A LEGALLY-BINDING INSTRUMENT, ALTHOUGH HE 
GAVE NO INDICATION THAT THIS WAS ANYTHING MORE THAN HIS 
PERSONAL OPINION. 
 
2. (C) POLMILOFF ON WEDNESDAY RAISED THE EMBARGO AND ITS LINK 
TO OUR ONGOING DEFENSE TRADE REVIEW (REF B) WITH BRIG. GEN. 
GIUSEPPE BERNARDIS, CHIEF OF ACQUISITIONS IN THE NATIONAL 
ARMAMENTS DIRECTORATE.  BERNARDIS IS A STRONG SUPPORTER OF 
THE U.S.-ITALY DEFENSE INDUSTRIAL RELATIONSHIP.  "I HAVE 
SPENT THE LAST FIVE YEARS TRYING TO STEER ITALY INTO CLOSER 
COLLABORATION WITH THE U.S.," HE EMPHASIZED.  BERNARDIS SAID 
    HE WAS AWARE OF OUR CONCERNS AS THEY HAD BEEN CONVEYED TO 
ITALIAN MOD OFFICIALS AT THE MARCH 30 U.S-ITALY DEFENSE 
INDUSTRIAL CONFERENCE IN WASHINGTON.  HE ACKNOWLEDGED THAT 
CHINA HAD TO BE HANDLED CAREFULLY BECAUSE OF ITS POTENTIAL TO 
BECOME A MILITARY SUPERPOWER AND THE LACK OF CLARITY ON 
"WHICH WAY IT WOULD GO".  BERNARDIS WAS INTERESTED IN KNOWING 
WHETHER SECRETARY POWELL HAD RAISED THE EMBARGO ISSUE WITH FM 
FRATTINI DURING THEIR APRIL 20 MEETING.  POLMILOFF ASSURED 
BERNARDIS THAT PREVENTING ARMS SALES TO CHINA WAS A PRIORITY 
FOR THE SECRETARY AND FOR OTHER SENIOR U.S. POLICYMAKERS. 
 
 
VISIT ROME'S CLASSIFIED WEBSITE: 
HTTP://WWW.STATE.SGOV.GOV/P/EUR/ROME/INDEX.CF M 
 
SKODON 
 
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 2004ROME01590 - Classification: CONFIDENTIAL